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Quantchabot has detected a promising Bull Call Spread trade opportunity for HONEYWELL INTERNATIONAL (HON) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HON was recently trading at $183.64 and has an implied volatility of 27.92% for this period. Based on an analysis of the options available for HON expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $182.76-$206.76 at expiration. In this scenario, the average linear return for the trade would be 55.24%.

52 week high: HONEYWELL INTERNATIONAL recently reached a new 52-week high at $184.27. HON had traded in the range $101.08-$184.06 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if HON maintains its current direction and does not revert back to pricing on the bearish side of $183.64 on 15-Jan-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if HONEYWELL INTERNATIONAL closes at or above $181.35 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.50% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.